More on REG's Room for More Funding
I have received some interest from a few people in donating to REG, and the main concern I’ve heard has been about whether REG could effectively use additional funding. I spent some more time learning about this. My broad conclusion is roughly the same as I wrote previously: REG can probably make good use of an additional $100,000 or so, and perhaps more but with less confidence.
Poker Market Saturation
Tobias from REG claims that about 70% of high-earning poker players have heard of REG, although many of those have had only limited engagement. He claims that they have had the most success convincing players to join through personal contact, and REG has not had contact with many of the players who have heard of it. This gives some reason to be optimistic that REG can expand substantially among high-earning poker players, although I would not be surprised if it started hitting rapidly diminishing returns once it grows to about 2x its current size.
To date, REG has not spent much effort on marketing to non-high-earning poker players. This field is much larger, but targeting lower-earning players should be less efficient because each individual player donates less money. To get a better sense of how important this is, I would have to know what the income distribution looks like for poker players, and getting this information is nontrivial.
REG would like to hire a new marketing person with experience in the poker world. They would probably be considerably better at marketing than any of the current REG employees. For this reason, additional funds to REG may actually be more effective than past funds, although this is difficult to predict in advance.
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